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| The path to commercial product |
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| nctnico:
--- Quote from: bdunham7 on June 09, 2020, 04:08:25 pm --- --- Quote from: nctnico on June 09, 2020, 12:56:50 pm --- --- Quote from: EEVblog on June 09, 2020, 11:10:58 am ---Of course you'd want to have business product liability insurance. --- End quote --- Which will be insanely expensive. A better (usual) approach is to create a limited liability company and make sure to certify the product to adhere to all the rules and regulations. Worst case the limited liability company goes belly up. As long as if there is no neglect and/or criminal intend your personal finances will be isolated from the company. In many cases companies which develop products are split into several entities. 1) holding(s) for primary share holders / owners, 2) holding for R&D where all the IP resides, 3) holding for selling products. Several of the companies I have worked for are structured this way. See here for a more thourough explaination: https://alainromanlaw.com/holding-company-structure/ --- End quote --- I don't mean to be offensive, but this is the most insanely bad legal advice you could possibly give a new business owner, for many reasons, at least here in the US where my expertise is valid. There are several reasons, and while I don't want to get into giving specific legal advice, I would caution any new business owner not to confuse what large organizations with huge legal budgets can get way with what you, the single-member LLC owner, can expect. --- End quote --- Ofcourse it depends on what kind of money you can spend and the local rules & regulations so my advise could be unsuitable in some cases. However the companies I worked for which are structured this way employed 20 to 40 people with a turnover of several million euro annually. Either way going for an limited liability company requires to get legal advise which will be tailored to local rules and regulations. The bottom line is that when you put products on the market on a large scale you will need to put some isolation between product liability, IP ownership and your personal finances. To get back to liability insurance: I have looked into that as well (several times) but besides the huge premiums the fine print excluded the risks I wanted to insure. They don't make it easy to understand these insurance policies and the people selling them seem to have very little knowledge on what the insurances actually cover. |
| calumk:
Many thanks to all of you for your helpful feedback. It has certainly cleared a few things up, and as is I suppose inevitable, generated more questions. I think ill hunt around for some more specific legal advice from other small UK startups. Cheers, Calum |
| EEVblog:
--- Quote from: nctnico on June 09, 2020, 12:56:50 pm --- --- Quote from: EEVblog on June 09, 2020, 11:10:58 am ---Of course you'd want to have business product liability insurance. --- End quote --- Which will be insanely expensive. --- End quote --- Really? I have $20M product liability coverage + $20M Public Liability for AU$1280 a year. And this includes covering all my onsite location filming etc. It was under $1k a year when I only had one lab and just me as the employee. |
| Mr. Scram:
--- Quote from: EEVblog on June 13, 2020, 02:47:39 am ---Really? I have $20M product liability coverage + $20M Public Liability for AU$1280 a year. And this includes covering all my onsite location filming etc. It was under $1k a year when I only had one lab and just me as the employee. (Attachment Link) --- End quote --- Does that include any physical products? |
| EEVblog:
--- Quote from: Mr. Scram on June 13, 2020, 03:34:05 am --- --- Quote from: EEVblog on June 13, 2020, 02:47:39 am ---Really? I have $20M product liability coverage + $20M Public Liability for AU$1280 a year. And this includes covering all my onsite location filming etc. It was under $1k a year when I only had one lab and just me as the employee. (Attachment Link) --- End quote --- Does that include any physical products? --- End quote --- Yes, of course, that's the point of it. If my uCurrent or a multimeter somehow does harm to anyone or anything, then I'm covered. |
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